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Equity Hedge Funds

Looking for Bias: Hedge Funds, Funds of Funds and Prime Brokers

Nov 28th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Institutional Investing, Hedge Funds, Funds of Hedge Funds, Structure of the Hedge Funds Industry, Allocating to A.I.

Prime brokers help funds of hedge funds identify hedge funds, which creates what the authors of a new paper call a PB bias. This means that portfolios are overweighted to the hedge funds serviced by the connected prime brokers. The scholars tested (and confirmed) the intuitive hypothesis that the biasRead More


Hedge Fund Flows Fall Flat in October

Nov 24th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Strategies, The A.I. Industry, Industry Size & Managers, Equity Hedge Funds, Asset Managers, Indexes, Hedge Funds, Event-Driven Hedge Funds, Macro and Managed Futures Funds

The Eurekahedge Hedge Fund Index was up 0.31% in October. However, it doesn’t measure up to the market next to the MSCI ACWI (Local), which ended October up 1.93%. Eurekahedge’s latest monthly report observes that US-China trade talks resumed, and this led to a certain tentative optimism. Since those areRead More


Icahn Loses Match: Knocked Out on A Books-and-Records Issue

Nov 21st, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds, Business News

The phrase “books and records” hardly suggests excitement. Yet, the cliched corporate lawyers’ phrase is not without payoff, either. Activist hedge funds are always interested in ammunition that will help them shake up entrenched managements and unlock value. The question often arises during the resultant fights: when does an activist/dissidentRead More


Machine Learning: Beyond the Fear of Unknown Unknowns

Nov 17th, 2019 | Filed under: Newly Added, Technology, Artificial Intelligence, Algorithmic and high-frequency trading, The A.I. Industry, Equity Hedge Funds, Alpha Strategies, Hedge Funds, Event-Driven Hedge Funds, Business News, Macro and Managed Futures Funds, Other Topics in A.I.

Machine learning as a way of managing a portfolio is a “wave of the future” with a lot of sea to cover before it breaks on the shore. Meson Capital Partners has sent its investors an update and summary for 2019 Q3 regarding its managed market neutral fund, and thisRead More


How to Improve Momentum Risk Management

Nov 12th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Risk management, Hedge Funds, Risk Metrics and Measurement, Risk Management Strategies & Processes

Matthew X. Hanauer and Steffen Windmueller, two scholars affiliated with the Technical University of Munich, compare the performance of three risk management approaches applicable to the momentum strategy. Their new paper also explores the risk management techniques available for hedge fund managers and others who pursue a momentum strategy. ARead More


The Risks of Betting on the Transformation of Automobiles

Nov 11th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds

Hedge funds recently are interested in taking the long position on Telenav (NASDAQ: TNAV). According to Insider Monkey, the number of hedge funds with positions in TNAV rose from eight to 13 at the end of 2018 and the beginning of 2017. Then it slid gradually back to eight overRead More


Investors Want Liquidity and They Want it Now

Nov 7th, 2019 | Filed under: Newly Added, Private Equity, Hedge Fund Strategies, The A.I. Industry, Debt Types of Private Equity, Institutional Investing, Hedge Funds, Equity Types of Private Equity, The Global Economy & Currencies, Other Issues in Private Investments, Business News, Economics, Institutional Asset Management, Private Investments, Macroeconomics, Allocating to A.I., Finance & Economics, Other Topics in A.I.

A recent publication from Fidelity Institutional Asset Management, while looking at the money markets in the US, emphasizes that investors are looking for liquidity. The report, written by Kerry Pope and Chris Lewis, each an institutional portfolio manager with FIAM, begins with a discussion of the Federal Reserve’s September rateRead More


Muddy Waters Sells Burford Short

Nov 3rd, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds

Burford Capital, a New York-based company, provides litigation finance. This is a subject of endless debate, especially among members of the plaintiffs’ bar. The old-style plaintiffs’ lawyer simply says “no, thank you” to any potential client without the financial wherewithal to bear the costs of an action, especially if theRead More


Blenheim Closes, Ushering in a New Era in Commodities

Oct 31st, 2019 | Filed under: Newly Added, Hedge Fund Strategies, CTA, The A.I. Industry, Investing in Commodities, Hedge Funds, Commodities, Macro and Managed Futures Funds

Willem Kooyker is folding up his tent at Blenheim Capital, the commodities-focused hedge fund headquartered in an office park in Berkeley Heights, N.J. Kooyker is a legend. In 1981, he went to work at Commodities Corp., Princeton, N.J., where he was a peer of Paul Tudor Jones, Louis Bacon, andRead More


Merger Arb: A Dis-economy of Scale 

Oct 27th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds

A new paper in the Journal of Economics and Business presents data on merger arb, and which factors, especially sector size and individual fund size, do or do not have an impact on the alpha available in the pursuit of this strategy. For a given time period, the total dollar amountRead More


It’s Not Cheating for Market Makers to Pay for Order Flow

Oct 24th, 2019 | Filed under: Newly Added, Algorithmic and high-frequency trading, Hedge Fund Strategies, The A.I. Industry, Asset Managers, Hedge Funds, Business News

Larry Tabb, in a piece in the Financial Times, has defended the controversial practice of payment for order flow (PFOF). Let’s start with PFOF and why it’s controversial. The UK’s Financial Conduct Authority defined PFOF in a recent white paper as the practice in which an investment firm, typically aRead More


Global Hedge Fund Assets Shrink

Oct 20th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Strategies, CTA, The A.I. Industry, Industry Size & Managers, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Macro and Managed Futures Funds, Relative Value Hedge Funds, Structure of the Hedge Funds Industry

According to the latest report from Eurekahedge, the world’s hedge funds recorded a net growth of $3.4 billion due to performance in September 2019. On the other hand, September also saw large net outflows of $6.2 billion. Assets at the end of the month were down 0.12%.  Looking at fundsRead More


The Persistence of the Low-Risk Effect

Oct 10th, 2019 | Filed under: Newly Added, CAPM / Alpha Theory, Hedge Fund Strategies, The A.I. Industry, Financial Economics Theory, Alpha Strategies, Hedge Funds, Finance & Economics

The “volatility effect,” also known as the “low-risk effect,” is the subject of a new paper from Robeco. The gist of the “effect” is this: low-risk stocks “should” show a lesser return than high-risk stocks. The Capital Asset Pricing Model predicts a linear relationship between the risk of a securityRead More


Valuation: A New Approach to an Old Financial Tool

Oct 7th, 2019 | Filed under: Newly Added, The A.I. Industry, Equity Hedge Funds, Risk management, Hedge Funds, Event-Driven Hedge Funds, Other Issues in Private Investments, Risk Management Strategies & Processes

Zane Swanson, an accounting professor at the University of Central Oklahoma, has been at work on a fascinating new approach to the valuation of firms and the valuation of their equity shares. This approach may be of great interest to risk arb hedge funds. Swanson is working with an establishedRead More


Eurekahedge: The Return of Alpha

Sep 29th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, CTA, The A.I. Industry, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Commodities, Macro and Managed Futures Funds, Structure of the Hedge Funds Industry

The Eurekahedge Hedge Fund Index was up in August, 0.17%, easily outperforming the global equity market, as measured by MSCI ACWI, which was down 2.37%. The August number brings the Eurekahedge HFI’s year-to-date result to 6.58%. Approximately 32.6% of the funds Eurekahedge tracks are in double-digits (positive) territory for theRead More


When Exchanges are Complements, not Competitors

Sep 26th, 2019 | Filed under: Newly Added, Algorithmic and high-frequency trading, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Business News, Finance & Economics

One regular theme of coverage and analysis that involves the listed equities, including analysis of the pursuit of alpha, is that many of the users of these markets claim, often quite obstreperously, that the exchanges charge more than makes sense and some restructuring of the industry is in order. TheRead More


Climate Change and Artificial Intelligence as Investment Mega-Trends

Sep 24th, 2019 | Filed under: Newly Added, Technology, Artificial Intelligence, Private Equity, The A.I. Industry, Alpha Strategies, Venture capital, Emerging Alternative Investments, The Global Economy & Currencies, Other Issues in Private Investments, Private Investments, Frontier markets, SRI and Clean Energy, Other Topics in A.I.

A report from CREATE in collaboration with BNY Mellon looks at two related megatrends in investing—climate change and artificial intelligence. It asks in each case: how is this trend perceived in terms of opportunities and risks? What are the specific investment issues involved or solutions likely to be adopted? AndRead More


Boone Pickens, A Trailblazer, Passes On

Sep 17th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Investing in Commodities, Socially responsible investing, Hedge Funds, Event-Driven Hedge Funds, oil, Alternative energy, Commodities, Other Issues in Private Investments, Energy, SRI and Clean Energy, Other Topics in A.I.

T. Boone Pickens died quietly at home in Dallas, Texas on Sept. 11, 2019. In his long career Pickens did a good deal to give the current hedge fund industry, as well as the broader asset management industry and the energy commodities markets, their character, in a life that sometimesRead More


Negative Interest Rates: A Reason to Invest in Hedge Funds?

Sep 9th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, CTA, The A.I. Industry, Equity Hedge Funds, Liquid Alternative Investiments, Alpha Strategies, Hedge Funds, Event-Driven Hedge Funds, Liquid Alts, Macro and Managed Futures Funds, Allocating to A.I.

Negative interest rate policy—that is, central bank arrangements that seek to inspire spending by punishing savings, not merely in real but in nominal terms—have spread in recent years among the developed economies, and are now in use in Japan, Switzerland, Sweden, and the Eurozone. Denmark got the ball rolling inRead More


Zebras Are Reactionaries

Sep 9th, 2019 | Filed under: Newly Added, What about beta?, The A.I. Industry, Asset Managers, Alpha Strategies, Hedge Funds, Smart Beta, Risk Management & Operations, Allocating to A.I.

Someone told me that it’s all happening At the Zoo. In this case, it was Paul Simon in his 1967 title song where he anthropomorphizes the animals he sees in the Central Park Zoo. Some are deemed to be honest, some kindly but dumb, and some insincere or skeptical, and,Read More


PORTFOLIO PROTECTION VIA MANAGED FUTURES LIQUID ALTS?

Sep 8th, 2019 | Filed under: Newly Added, Commodities, Hedge Fund Strategies, CTA, The A.I. Industry, Investing in Commodities, Liquid Alternative Investiments, Alternative Mutual Funds, Hedge Funds, Liquid Alts, Commodities, ETFs, Macro and Managed Futures Funds, Allocating to A.I., Other Topics in A.I.

By Nicolas Rabener of FactorResearch (@FactorResearch) INTRODUCTION The mafia and the hedge fund industry share some characteristics. Both are powerful, non-transparent, and create little value for society. Naturally the mafia is a criminal organization while the only “criminal” element of hedge funds are the high fees they are charging forRead More


Back to the Near Future: 2019 Mergers & Acquisitions

Sep 5th, 2019 | Filed under: Newly Added, Private Equity, Hedge Fund Strategies, The A.I. Industry, Debt Types of Private Equity, Hedge Funds, Event-Driven Hedge Funds, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

Intralinks has put out its predictions for mergers and acquisitions activity through the remainder of this year. The Intralinks Deal Flow Predictor tracks early-stage deal activity to predict how many deals have reached public-announcement stage six months on. The latest issue of the SS&C Intralinks Deal Flow Predictor also includesRead More


New Study Shows Hedge Fund Investors are Quick Learners

Sep 3rd, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Consultants, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Institutional Investing, Hedge Funds, Event-Driven Hedge Funds, High-net-worth investors, Endowments & Foundations, Institutional Asset Management, Family Offices

A recent study by two scholars at the University of California Irvine asks how quickly investors learn about the skills of their asset managers, including their hedge fund managers. Christopher Schwarz and Zheng Sun, both associate professors of finance at The Paul Merage School of Business at UC Irvine, hadRead More


Corporate Restructuring: United States vs. United Kingdom

Sep 2nd, 2019 | Filed under: Newly Added, Private Equity, Hedge Fund Strategies, The A.I. Industry, Debt Types of Private Equity, Insolvency, Regulatory Environment, Hedge Funds, Event-Driven Hedge Funds, Other Issues in Private Investments, Business News, Private Investments

David Stevenson, a US District Court Judge for the Northern District of Texas, has presented his analysis of the  differences between the law in the United Kingdom and the United States concerning “a debtor’s ability to approve a restructuring arrangement over the objection of creditors that disapprove.” This is moreRead More


Options: When Skewness is Not on the To Do List

Aug 29th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Structure of the Hedge Funds Industry

Which options do hedge funds employ in their portfolios? A recent paper concludes that hedge funds as a trader/investor class prefer liquid high-embedded leverage options without lottery-like skewness. The paper also finds that they are good at what they do. Their equity options plays “deliver superior performance unobtainable by tradingRead More


Hedge Fund Performance Gains: Investor Flow Losses

Aug 25th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Macro and Managed Futures Funds, Relative Value Hedge Funds, Structure of the Hedge Funds Industry

Global hedge fund assets under management have stayed close to flat for months now. That’s one of the points made in the latest Eurekahedge report. As of July, the AUM is just a little under $2.3 trillion, or roughly where it has been since late last year. Although there haveRead More


Anticipating Buyout Deals: A Prospective New Model on an Old Strategy

Aug 22nd, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Risk management, Hedge Funds, Event-Driven Hedge Funds, Risk Metrics and Measurement, Smart Beta, Risk Management Strategies & Processes, Risk Management & Operations

Milind Sharma and Aravind Ganesan have developed what they call the QMIT Leveraged Buyout Model—a trading strategy—based on anticipating announcements of LBOs based on QMIT’s factor library. Sharma is the CEO of QMIT, QuantZ Machine Intelligence Technologies. QMIT is itself a spin-off from QuantZ Capital, which is a stat arbRead More


What Hedge Funds Do When the Lights Go Out

Aug 13th, 2019 | Filed under: Newly Added, CAPM / Alpha Theory, The A.I. Industry, Equity Hedge Funds, Financial Economics Theory, Hedge Funds, Finance & Economics

A new paper looks at how hedge funds adjust their information acquisition and trading behavior as analyst coverage changes—and more specifically, when certain stocks cease to be covered by certain analysts. These authors considered the hypothesis that, faced with a murkier environment, hedge funds might become more cautious, reducing theirRead More


QUANT STRATEGIES: THEORY VS. REALITY

Aug 11th, 2019 | Filed under: Newly Added, Algorithmic and high-frequency trading, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Liquid Alternative Investiments, Hedge Funds, Smart Beta, Other Topics in A.I.

By Nicolas Rabener of FactorResearch (@FactorResearch) INTRODUCTION When pitching an investment product with a backtested history the frequent response from potential investors is that they have never seen a bad backtest. Naturally this is true as there is no point in marketing a strategy with a poor backtest as investorsRead More


How Endowments and Foundations Look at Hedge Funds

Aug 8th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Consultants, Private Equity, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Debt Types of Private Equity, Venture capital, Hedge Funds, Equity Types of Private Equity, High-net-worth investors, Endowments & Foundations, Institutional Asset Management, Private Investments, Fees, Family Offices

Cowen’s Capital Introduction Group has compiled information on what the endowment and foundation community is thinking about hedge funds and how best to invest in them. The Cowen paper on the subject begins with the observation, drawn from Preqin, that at present US-based E&Fs with more than $750 million inRead More


Judicial Stress for Distressed Debt Strategies: Clawing Back Clawbacks

Aug 6th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds

In contemporary bankruptcy proceedings, creditors’ recovery often depends on the success of clawback lawsuits initiated by trustees. Sometimes the creditors in question are hedge funds, having bought the debt instruments at a discount. Their success depends on the success of the clawback proceedings: that is, on the law of avoidance.Read More


High-Yield Credit: The Case for Systematic and Discretionary Management

Aug 4th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Hedge Funds, Relative Value Hedge Funds

A new look “under the hood” at active credit managers comes from a paper written by two executives at AQR Capital Management. Diogo Palhares and Scott A. Richardson find that long/short fixed-income managers have a high exposure to the credit risk premium. But high-yield-focused long-only managers provide less exposure toRead More


Hedge Fund Performance and Fees: Who is Earning Their Keep?

Jul 30th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, CTA, The A.I. Industry, Industry Size & Managers, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Macro and Managed Futures Funds, Fees, Relative Value Hedge Funds, Structure of the Hedge Funds Industry

The Eurekahedge Hedge Fund Index was up in June, wrapping up a very strong first half of the year for the hedge fund industry. The monthly increase of 1.83% reverses the down month of May, which in turn was a reversal of the strength of the first four months, withRead More


Advance Notice Bylaws vs. Activist Hedge Funds

Jul 25th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds

One of the tools commonly used by the management of publicly owned corporations to limit the activism (or to limit what they see as the interference) of activist investors, emphatically including equity and event-driven hedge funds, is the creation and enforcement of advance notice bylaws. Such a bylaw (in aRead More


How to Improve Your Short-Selling Batting Average

Jun 30th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds

Downside Protection: Process and Tenets for Short Selling in All Market Environments is the new book by Nitin K. Sacheti. This is a better approach than that of certain other short-oriented titles, which have given “how I hit my home run” accounts of making the right call at the rightRead More


Hedge Fund Index Backslides in May; Remains in Positive Territory

Jun 25th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, CTA, The A.I. Industry, Industry Size & Managers, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Commodities, Funds of Hedge Funds, Relative Value Hedge Funds

Red ink spoiled an otherwise positive 2019 for he Eurekahedge Hedge Fund Index. The decline of 0.71% leaves the year-to-date performance still well up, at +4.32%. Approximately 41.6% of the funds Eurekahedge tracks were in the black for the month. And 15% have generated double-digit gains year-to-date. North America-mandated hedgeRead More


A HORSE RACE OF LIQUID ALTERNATIVES

Jun 13th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, CTA, The A.I. Industry, Investing in Commodities, Equity Hedge Funds, Liquid Alternative Investiments, Hedge Funds, Liquid Alts, Commodities, ETFs, Macro and Managed Futures Funds, Other Topics in A.I.

By Nicolas Rabener of FactorResearch (@FactorResearch) INTRODUCTION Investing is challenging as it is complex and complicated, which requires continuous learning and updating of mental frameworks. Conflicts and contradictions are found everywhere. For example, data from the mutual fund industry shows that most funds fail to outperform their benchmarks, but investors inRead More


It’s YOUR Reputation; Time to Beale With It! 

Jun 10th, 2019 | Filed under: Newly Added, What about beta?, Hedge Fund Industry Trends, Hedge Fund Strategies, Hedge Funds, Alternative Investments in Context, Structure of the Hedge Funds Industry

By Bill Kelly, CAIA Association CEO The satirical movie Network was released almost 40 years ago. The character Howard Beale, played by the actor Peter Finch, is one of the more enduring legacies of this film. He is a news anchor for the UBS Network, and he is to be terminated in two weeks for fallingRead More


Hedge Funds, Agency Capitalism, and Poison Pills

Jun 9th, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

A new paper in the Journal of Applied Corporate Finance looks at “agency capitalism” and its development in the United States during the past 15 to 20 years. The term “agency capitalism” refers in general to any system in which institutional investors dominate as shareholders of record for the votingRead More


Hedge Funds Performing Well Year-to-Date, But Trade Issues Loom Large

Jun 2nd, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Relative Value Hedge Funds

The Eurekahedge Hedge Fund Index continues to reflect strong performance for the year. First quarter 2019 was one of the strongest quarterly returns since the global financial crisis, and each of its three months was positive. April was another up month, +1.06%, which brings us to +5.15% YTD. Hedge fundsRead More


How Hedge Funds Use Corporate Social Responsibility Considerations

May 30th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, Social investing, The A.I. Industry, Equity Hedge Funds, Socially responsible investing, Hedge Funds, Event-Driven Hedge Funds, SRI and Clean Energy

A new study by Jun Duanmu and three colleagues examines hedge fund use of matters of corporate social responsibility. The authors work from an asset-weighted composite measure of CSR by fund, in order to seek the difference in financial performance of those hedge funds with high CSR investment and thoseRead More


Quants in China: Which Factors Work?

May 28th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, The Global Economy & Currencies, Emerging markets

The outperformance of the size, value, and reversal factors is strong, but the momentum factor, which has performed well in the U.S., does not work in China. This is the conclusion of a new white paper published by  Neuberger Berman about quantitative investing in China A shares. It has aRead More


The Two Faces of Investing in Renewables

May 27th, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Investing in Commodities, Equity Hedge Funds, Socially responsible investing, Hedge Funds, Event-Driven Hedge Funds, Emerging Alternative Investments, The Global Economy & Currencies, Emerging markets, Alternative energy, Commodities: Examples, Energy, Frontier markets, SRI and Clean Energy, Other Topics in A.I.

Renewable energy, however defined, is widely seen as a sustainable and socially responsible (and, if the investing is done right, very profitable) addition to one’s portfolio. Indeed, such entities as the Institute for Energy Economics and Financial Analysis, an Ohio based research-and-analysis shop, exist to show that renewables are theRead More


The ‘Vortex of Volatility’ and the Merger Market  

May 16th, 2019 | Filed under: Newly Added, Private Equity, The A.I. Industry, Equity Hedge Funds, Debt Types of Private Equity, Hedge Funds, Event-Driven Hedge Funds, Equity Types of Private Equity, Other Issues in Private Investments, Private Investments

Intralinks, the provider of inter-enterprise collaboration products that is perhaps best known for its Deal Flow Predictor, recently interviewed Paul Aversano, a managing director at the consultancy Alvarez & Marsal. Aversano leads A&M’s private equity services practice, and he is the global practice leader of the transaction advisory group. HeRead More


HEDGE FUND ETFS: BETTER THAN THE ORIGINALS

May 12th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Retail Investing, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Event-Driven Hedge Funds, Alternative Investments in Context, ETFs, Macro and Managed Futures Funds, Relative Value Hedge Funds, Allocating to A.I.

By Nicolas Rabener of FactorResearch (@FactorResearch) INTRODUCTION As Amazon has been decimating large parts of the retail industry over the last two decades, ETFs have done the equivalent to the mutual fund industry in the financial world. Today ETFs are covering nearly all areas of the markets, no matter howRead More


Hedge Funds: The Strongest Quarterly Return Since the GFC

May 2nd, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, The A.I. Industry, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Macro and Managed Futures Funds, Relative Value Hedge Funds

March was a good month and the first quarter of 2019 was promising, according to the April report from Eurekahedge. The Eureka Hedge Fund Index gained 1.06% in March. This yields a first quarter return of 4.36%. As the report says, this is the strongest quarterly return since the globalRead More


Hedge Funds and the EUR/CHF Trade

Apr 22nd, 2019 | Filed under: Newly Added, Hedge Fund Strategies, Currencies, The A.I. Industry, Equity Hedge Funds, Forex, Hedge Funds, Event-Driven Hedge Funds, The Global Economy & Currencies, Macroeconomics

Three scholars affiliated with JP Morgan Chase have written a paper on hedge fund behavior ahead of meetings of the Swiss National Bank, with the idea of shedding light on the consequences of the timing of central bank announcements more generally. They conclude that the SNB contributed to the volatilityRead More


REPLICATING FAMOUS HEDGE FUNDS

Apr 21st, 2019 | Filed under: Newly Added, Hedge Fund Strategies, The A.I. Industry, Alternative Beta & Hedge Fund Replication, Hedge Funds

By Nicolas Rabener @Factor Research INTRODUCTION In 1973, the U.S. Food and Drug Administration (FDA) published the first regulations that required the nutrition labeling of certain foods as consumers were left in the dark about what they were eating. The regulations evolved and culminated in the widely-recognized nutrition facts panelRead More


Hedge Funds: Deep-Diving Into the 2018 Numbers

Apr 18th, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Indexes, Hedge Funds, Event-Driven Hedge Funds, Macro and Managed Futures Funds, Structure of the Hedge Funds Industry

Martin McCubbin, a senior research analyst at Fidante, looks at the hedge fund performance numbers for 2018 in a new paper, which shows it was a difficult year. Early going in 2019 has been somewhat better, but that the “better” cannot be relied upon. The rest of this year couldRead More


High-Frequency-Trading Firms: Fast, Faster, Fastest

Apr 2nd, 2019 | Filed under: Newly Added, Hedge Fund Industry Trends, Algorithmic and high-frequency trading, Hedge Fund Strategies, The A.I. Industry, Equity Hedge Funds, Hedge Funds, Business News

Many high-frequency trading (HFT) firms have disappeared into larger firms as merger activity has increased recently. Those acquired include Chopper, Infinium, Teza, RGM Advisors, and Sun Trading. It also includes Getco, the Chicago-based firm founded in 1999 by two former floor traders that almost defined the field for some time.Read More